$24B Lido Launches v3 With Modular stVaults

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Good Morning.

The SEC’s new Crypto Task Force is finally looking to clean up the regulatory mess left by the previous administration, signalling a potential shift from enforcement chaos to structured oversight. Amid the regulatory reshuffling, builders keep shipping. Berachain’s long-awaited mainnet is launching, Uniswap V4 is live, and Ethereum-based protocols are expanding rapidly. If the past week proves anything, it’s that crypto isn’t slowing down.

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In Today's Email:

• What Matters: Lido v3 with Modular stVaults 💧 

• Case Study: MegaETH's Fluffle NFT 🔎 

• Governance & Features: TONxLayerZero 🤝 

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WHAT MATTERS

Lido Launches v3 with Modular stVaults

State of play: Lido is rolling out its v3 upgrade this summer, introducing “stVaults,” a modular smart contracts that allow users to design customized Ethereum staking strategies around the liquid stETH token.

• These stVaults let users adjust fee structures, select specific validator configurations, and fine-tune risk profiles.

• The vaults are designed to cater to institutional stakers, node operators, and asset managers who require enhanced operational control and compliance.

• Vaults are also opt-in, meaning that any of the customized DeFi strategies users create have limited security risks for other users.

• The rollout will begin with an early adopter program and progress through testnet and mainnet phases as determined by the Lido DAO.

• Lido is the largest Ethereum staking protocol with around $25B in total value locked.

Why it matters: By customizing fee structures, validator setups, and risk profiles, these smart contracts enable institutional stakers, node operators, and asset managers to meet their compliance and operational needs.

Our take: This is Lido’s move to cater to institutional needs. Ethereum staking ETF is definitely coming but any institution won’t just integrate stETH without any ability to add a tweak of compliance. But, Lido also doesn’t want to lose their business.

For builders and investors: Customized products can now be developed around stVaults, potentially creating new apps or integrations that further increase the size of onchain economy.

CASE STUDY

MegaETH's Fluffle Mint Goes RNG

MegaETH announced changes to the Fluffle NFT mint process, which will now incorporate an RNG selection for Day 2 minters.

• The mint launched on mainnet yesterday, with Day 1 offering a guaranteed, free mint and no registration required.

• For Day 2, users must register on the website by 6 PM EST on February 9, pre-load their account with 1 ETH, and verify ownership via a signed transaction.

• With published verification, an RNG process will select 5,000 accounts for minting, repeating if mints remain after 24 hours.

• No KYC is required for either day. Further details are available on their Discord.

• User Scorpy shared his unique experience, highlighting users can choose from 16 different fluffle tribes and over 100 bunnies with varying traits.

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INSIGHTS

Rep. Waters Unveils Draft Stablecoin Regulation

Democrat Rep. Maxine Waters has released a discussion draft proposing new regulations for stablecoins. The draft calls for oversight by federal regulators, the Comptroller of the Currency, the Federal Reserve, and FDIC, as well as state regulators.

• Under the proposal, registered stablecoin issuers must maintain reserves on at least a one-to-one basis and adhere to strict reporting requirements.

• Waters’ proposal contrasts with a recent Republican-led draft that assigns oversight primarily to the Office of the Comptroller of the Currency.

• Meanwhile, Senate efforts are also underway with a bill introduced by Sen. Hagerty.

FEATURES & GOVERNANCE UPDATE

TON Integrates LayerZero for Cross-Chain Tx

TON has partnered with LayerZero to enable cross-chain asset transfers across more than 100 blockchains, starting with Ethereum, Tron, Solana, and nine others.

• The integration aims to overcome TON’s liquidity limitations by providing access to multi-chain liquidity and major crypto assets from various ecosystems.

• Key partners in this initiative include USDT0, Ethena, and the cross-chain bridge Stargate.

• According to TON Foundation’s COO, this move significantly enhances interoperability and equips developers with the tools needed to build dApps for a global audience.

Other notable feature updates:

• Uniswap v4 is now live.

• Frax Finance introduced BAMM.

• Layer3 has launched Layer3 Intel.

• Symbiotic launches on Ethereum mainnet.

• Bunni v2 is live on Ethereum, Base, and Arbitrum.

• Ondo Finance is integrating USDY with the Stellar network.

QUICK BITES

• SEC acknowledges spot SOL ETF filings.

• BitGo plans to go public as early as Q2 2025.

• Goldman Sachs doubles down on BTC ETFs.

• Lido unveils V3, introducing customizable 'stVaults.'

• TON integrates with LayerZero for cross-chain asset transfers.

• Trump plans to nominate a16z’s Brian Quintenz to chair CFTC.

• Meme & AI token indices plummet 50% from December peaks.

• World Liberty & Ondo partner to expand tokenized RWA adoption.

• Bank of England boss says stablecoins require 'high bar' regulations.

• US House hearing reveals divides over stablecoin, crypto regulation.

• Hester Peirce says memecoins likely to fall outside of SEC jurisdiction.

• Sol Strategies tapped as staking provider for 3iQ’s Solana staking ETF.

NOTEWORTHY READS & MEME

• Santiago Santos’ read on building the inversion chain.

• Coinmetrics’ read on previewing Coinbase Q4 2024 earnings.

• Conor Ryder’s read on the inside look at a historical liquidation event.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.